If you have trouble making your repayments on your debt, you might be considering an ecured loan IVA. With this type of debt relief, you can make reduced payments on your existing debts in exchange for a lower interest rate. However, this option is not appropriate if you owe more than PS10,000. In addition, IVA has a longer repayment term, so it may not be the best option for you if your debts are much higher than PS10,000.
The most important thing to remember before considering an IVA is that you cannot borrow more than PS500 without the permission of your creditors. Additionally, your IVA will be listed on the Insolvency Register, which is a public database of personal insolvencies in the UK. Fortunately, this information is not publicly accessible, and is unlikely to be seen by other people besides lenders and credit reference companies. Credit reference agencies are responsible for calculating your credit rating. The higher your credit rating, the better chance you have of being approved for a loan.
When applying for an IVA, it is important to remember that you need the approval of seventy-five percent of your creditors. This is known as the ‘by value’ rule, so the creditors owed the most may vote against you. It is important to keep in mind that your creditors can haggle over the terms of your IVA, so make sure you know exactly what you owe. You may even be required to include some of your assets in the repayment plan, which can increase the overall cost of your IVA.
If you have a secured loan, you might consider talking with the lender to see if it is possible to pay off that debt through an IVA. Then, if you have unsecured debts, your only real option is an IVA, and you will need to pay reasonable contributions to the IVA for five years. The process is quick and easy and only takes a few minutes to complete. You should take time to decide whether an IVA is right for you and your financial situation before you make a decision. If you have the money and are willing to make this commitment, it may be the best option for you.
Once you’ve made the decision to apply for an IVA, your unsecured creditors can’t repossess your property. However, they can pursue you through legal means, such as using the Consumer Credit Act or filing for bankruptcy. This is when the IVA Nominee can apply for an Interim Order, which halts any legal action until the creditors’ meeting. The Interim Order will make sure your creditors don’t have a hard time collecting on their debts.
When you’re planning for an IVA, remember that unsecured debts can be included. These are not considered priority debts, so falling behind on them won’t have the same consequences. However, unpaid priority debts can result in legal action and home repossession. In any case, you can still suffer from a damaged credit rating, extra fees, and other financial complications. You should carefully consider an IVA if you’re seriously worried about your debts.